eNAIRA: WHAT YOU NEED TO KNOW ABOUT THE DIGITAL NIGERIAN CURRENCY 

Did you know that, contrary to speculation, Nigeria's first digital currency issued by the CBN, the eNaira, will not replace the physical Naira, but will act as a digital representation of it?

With the rise in popularity of cryptocurrencies like Bitcoin, governments around the world have begun to consider producing their own digital currencies. And Nigeria is no exception as the Central Bank of Nigeria (CBN) launched and activated its own digital currency called the eNaira on 25 October, 2021 by President Muhammad Buhari, under the slogan: "Same Naira, More Possibilities".

eNaira is a Central bank digital currency (CBDC) issued and regulated by the Central Bank of Nigeria. Denominated in naira, the eNaira serves as both a medium of exchange and a store of value and claims to offer better payment prospects in retail transactions when compared to cash.

The eNaira work as a digital version of the physical Naira. Financial institutions licensed by the CBN will be responsible for ID verification, eNaira payment processing, and creating wallets for customers to hold their eNaira.

The eNaira wallet is similar to a bank account and is created in the same way; however, it will be a separate account that is not connected to an already existing bank account. Transactions will be possible between two parties that both have an eNaira wallet, which allows you to store, send, and receive eNaira.

Like Bitcoin, the eNaira is a digital currency, but issued by the government. Unlike Bitcoin or other cryptocurrencies, the eNaira will maintain the same value as the Naira. Therefore, its value will not rise and fall the way Bitcoin does, also meaning it is not something to invest in to grow one's fortunes.

The CBN believes the eNaira will greatly improve financial inclusion, payment processing, and tax collection, among other things. The eNaira is also expected to increase cross-border trade, which could have a positive impact on the Nigerian economy. However, it is still unclear how cross-border transactions will work with eNaira.

The eNaira Speed Wallet application is available for download on Google Play Store and App store since October 28, 2021. New updates on the eNaira Speed wallet is also available.

Sources:

https://en.m.wikipedia.org/wiki/ENaira

https://www.majority.com/en/community/article/everything-you-need-to-know-about-enaira/